The Mambabatas Kontra-Kartel (MKK) alliance of legislators opposed to relentlessoil price hikes and increases in LPG prices in a press conference today at theHouse of Representatives said that it supports the calls of various consumersgroups and people's organizations against the oil price hikes, including thedemands that the oil deregulation law be immediately subjected to review andmore importantly, repeal.

Several transport groups and consumers organizations expressed their gratitudeto the lawmakers' action of forming an alliance against oil price increase inthe House of Representatives. Transport groups are calling on the public tojoin them in several protest actions across the country on Thursday, November25 condemning the recent P1.00/liter and P0.50/liter increase in gasoline anddiesel prices, respectively. They are also calling for the repeal of the oilderegulation law.

The MKK solons said that consumers and the rest of the public need immediaterelief from the oil prices hikes. They said that soaring oil prices and lowfood supplies because of floods in the recent months have already kickedinflation levels high - the highest in more than five years. Last month,inflation levels were already pegged at 7.2 percent.

"Prices of food and beverages have increased by as much as 7.1 percent. For foodalone, prices rose by 7.3 percent. This was because prices of basic foodingredients and materials also increased: corn by 11.9 percent; cerealpreparations, 5.8 percent; dairy products 9.1 percent, eggs by 6.2 percent,fruits and vegetables, 9.5 percent; and miscellaneous food items 4.5 percent. Rice price have increased by 3 percent; fish and meat by 9.2 percent and 15.5percent respectively. In all these price increases, the OPHs have played acrucial role. These figures can only go up if the oil price hikes do not letup," the MKK solons said.

Anakpawis Rep. Beltran said that the Philippines is the country in Asia hardesthit by steep increases in global oil prices. Among the oil -importing economiesof China, Hong Kong, India, South Korea, Malaysia, Singapore and Thailand, thePhilippines is in the worst position to cope with the OPHs.

"The actual buying purchasing power of wages and salaries here is much lowerthan in our neighbors. Inflation moves faster here. Already, housing andrepairs, fuel, light and water cost have already jumped higher in the last twomonths as a direct impact of the oil price hikes. The terms of the purchasingpower of peso has lost at least 40 centavos of its nominal value. The realvalue lost is much higher given inflation and the increasing exchange valueversus the dollar," he said.

The MKK solons also expressed alarm over reports that gasoline stations all averthe country are closing shop because of the OPHs. According to reports, gasolinedealerships are losing profits and therefore closing shop at an alarmingly highrate, especially those dealerships of the so-called independent, smallerplayers. These closures also mean loss of employment for hundreds of workers."No wonder then that even the small players are calling for the repeal of theoil deregulation law. Only the giant oil companies of Shell, Caltex and Petron are having a great time at this age of relentless oil price increases.Their profits are not only intact - they're still growing," they said.

MKK also supports public calls for the following measures as immediate measuresto counteract the OPHs:1. Centralization of procurement of imported crude oil and refined petroleumproducts2. Establishment of a buffer fund to be developed from the operations ofcentralized procurement to protect local retail prices from sudden increases inworld prices3. Abolition of specific taxes on petroleum products4. Widest possible public consultation as a requirement before implementing oil price adjustments5. Full disclosure of oil companies' pricing scheme and inventory. #